eHealthInsurance.com Investor Relations – News Release

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Jan. 16, 2018--
eHealth, Inc. (Nasdaq: EHTH), a leading private online health insurance
exchange in the United States, announced today that it had entered into
a definitive agreement to acquire Health, Wealth and Life Advisors, LLC,
more commonly known as GoMedigap, a technology-enabled provider of
Medicare Supplement enrollment services, for $20 million in cash and
eHealth common stock, subject to purchase price and escrow adjustments.
In addition, GoMedigap membership interest holders have the potential to
earn up to an additional $30 million of cash and eHealth common stock
subject to the attainment of certain milestones in calendar years 2018
and 2019. The agreement to acquire GoMedigap is subject to customary
closing conditions.

Founded in 2013, GoMedigap has built a leading consumer acquisition and
engagement platform focused on meeting the Medicare Supplement insurance
needs of its individual customers with a technology-enabled,
consumer-centric approach that aligns with eHealth’s mission and
operations. GoMedigap currently serves over 26,000 existing Medicare
Supplement customers and has a track record of profitable growth.
eHealth expects the acquisition of GoMedigap to be accretive to the
combined company’s earnings.

“We are very excited to join forces with GoMedigap. Its co-CEOs, Richard
Cantu and Kevin Walbrick, have built a successful Medicare Supplement
business that excels across key areas of digital marketing, customer
engagement and efficient sales execution,” said eHealth chief executive
officer, Scott Flanders. “The transaction fits well into our strategy of
rapidly expanding eHealth’s presence in the Medicare Supplement market
to complement our successful and growing Medicare Advantage and Medicare
Part D prescription drug plan business. The Medicare Supplement market
is attractive from a demographic perspective with over 13 Million
individuals currently enrolled in Medicare Supplement plans. We believe
that having a more balanced and complete focus on both Medicare
Advantage and Medicare Supplement products significantly broadens our
addressable market and allows us to better serve the diverse health
insurance needs of our customers. The goal is to leverage our collective
strengths and capabilities to deliver market leading decision support
tools and enrollment services with a broad selection of Medicare plans
and carriers to meet every consumer’s need.”

This strategic acquisition significantly enhances eHealth’s growing
presence in the Medicare Supplement market, puts eHealth in a stronger
position with carriers and strategic partners and allows the company to
accelerate its projected Medicare plan enrollment growth in 2018 and
beyond. eHealth intends to further invest in GoMedigap’s platform and
operations while integrating the company’s core technology and processes
into the combined entity. GoMedigap’s co-CEOs will join the eHealth
executive team and will continue to manage GoMedigap’s Medicare
Supplement business headquartered outside of Austin, Texas.

eHealth, Inc. (NASDAQ: EHTH) operates eHealth.com,
a leading private online health insurance exchange where individuals,
families and small businesses can compare health insurance products from
leading insurers side by side and purchase and enroll in coverage online
and over the phone. eHealth offers thousands of individual, family and
small business health plans underwritten by many of the nation's leading
health insurance companies. eHealth (through its subsidiaries) is
licensed to sell health insurance in all 50 states and the District of
Columbia. eHealth also offers educational resources, exceptional
telephonic support, and powerful online and pharmacy-based tools to help
Medicare beneficiaries navigate Medicare health insurance options,
choose the right plan and enroll in select plans online through
PlanPrescriber.com (www.PlanPrescriber.com),
eHealthMedicare.com (www.eHealthMedicare.com)
and Medicare.com (www.Medicare.com).

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Statements concerning the expected
benefits of the acquisition, future investments in GoMedigap’s platform
and operations, the payment of the purchase price through existing cash
balances, and statements containing words such as may, believe,
anticipate, expect, intend, plan, project, and estimate or similar
expressions constitute forward-looking statements. Forward-looking
statements involve risks and uncertainties including, among others, the
failure to satisfy regulatory and other closing conditions to the
acquisition. More information about potential risk factors that could
affect eHealth’s operating and financial results are contained in
eHealth’s Quarterly Report on Form 10-Q for the quarter ended September
30, 2017 filed with the Securities and Exchange Commission. All
forward-looking statements are expressly qualified in their entirety by
this cautionary statement. eHealth does not intend to revise or update
the information set forth in this press release, except as required by
law, and may not provide this type of information in the future.